Crypto markets might be poised for a relief rally following a significant surge in June. Analysts have observed a decline in the selling pressure on exchanges, suggesting a more optimistic outlook for July. The blockchain data analysis platform Santiment noted these positive indicators on July 2, presenting a potentially favorable scenario for the coming month.
Is the Selling Pressure Over?
The negative market sentiment experienced recently and investor losses could imply that a relief rally is imminent. According to TradingView data, Bitcoin suffered a nearly 7% fall in June, hitting a low of $59,500. Despite this, the $60,000 level served as a crucial support, with Bitcoin trading at $62,833 at the time of writing.
TradingView data further reveals that the crypto market’s total value dropped by approximately $400 billion from its peak of $2.5 trillion to last month’s lowest level. Many other cryptocurrencies mirrored this decline. Analyst Minkyu Woo, an author approved by CryptoQuant, also expressed optimism, stating sellers appear to have exhausted their selling spree.
Details on the Subject
From January of last year, the average size of Tether outflows from exchanges exhibited a decline. This trend continued following a considerable increase in June, indicating diminished large-scale selling pressure. Minkyu Woo commented on this, highlighting that reduced outflows suggest investors are now more inclined to hold onto their assets, possibly reflecting a shift to positive sentiment after the Bitcoin halving event.
Practical Insights for Investors
– Monitor Bitcoin’s support level at $60,000.
– Observe Tether outflows as an indicator of market sentiment.
– Stay informed on potential market impacts from events like Mt. Gox’s Bitcoin unlocking.
Bitcoin is presently trading around $62,950, marking a 0.4% decline over the past 24 hours. Among the negative events impacting Bitcoin and the crypto market this month is the unlocking of $9 billion worth of Bitcoin by the long-bankrupt exchange Mt. Gox. This event could introduce selling pressure as creditors may seek to cash out their long-locked assets.
